Car prices in Britain are still far higher than anywhere else in the European Union, a survey confirmed this week.

Car prices in Britain are still far higher than anywhere else in the European Union, a survey confirmed this week.

And British motorists shopping for bargains on the Continent face opposition from car dealers in other EU member states.

European Commissioner, Mario Monti, said carmakers who impeded Britons from picking up cheaper cars would face investigation for restrictive practices.

Last month Mr Monti said he was ending special rules which allow carmakers and dealers to operate exclusive distribution networks - an arrangement which he said had been used to inflate prices in some markets artificially.

The latest survey, for the EU Commission, shows the UK is now the most expensive market for 52 out of 80 car models.

Carmakers are supposed to ensure the price difference for the same model in different EU markets is never more than 12 per cent. But some cars - notably the Vauxhall Vectra - are still 40 per cent more expensive before tax in the most expensive country compared with the cheapest.

Mr Monti said British car prices were affected by the extra cost of UK specification, in particular the installation of right-hand drive. The high value of sterling was also a factor. But the Commission does not think the price gap is fully justified by these considerations.

"Since UK prices are still much higher than elsewhere, many British consumers continue to try to buy from continental dealers," said Mr Monti.

"The Commission still receives complaints from British consumers who encounter obstacles when purchasing a car in another member state. Many complaints relate to high right-hand drive supplements and long delivery times. The Commission reaffirmed its commitment to investigate restrictive practices by car makers that impede EU citizens from buying a car in another member state."

The survey shows the price supplement for right-hand drive specification is highest for cars made by VW, Audi and Fiat. The lowest are for Japanese models.

Some British car prices have fallen by more than five per cent and new car prices in Britain are generally stable. However, the price gap, compared with the cost of cars in the Euro-zone countries, remains wide. In some cases the gap is growing, with a Vauxhall Corsa now 36.9 per cent dearer in the most expensive EU markets compared with only 24.6 per cent a year ago.

A VW Golf is 34.5 per cent dearer compared with 32.9 per cent a year ago and the price gap between the most expensive and the cheapest EU markets for a Vauxhall Vectra is 41 per cent compared with 25.2 per cent a year ago. All prices are pre-tax.

Small cars, multi-purpose vehicles, and superminis were the best bargains. The only sector to show a rise was luxury cars, up 2.2 per cent.

"It is too early to tell if this latest drop will continue," said Douglas McWilliams of the Centre for Economics and Business Research.